UK: Asda delists Hovis in small stores over supply "problems"

Asda said Premier was “having problems” delivering to its supermarket format stores

UK retailer Asda has delisted Hovis products from its smaller stores in a further blow to the bread arm of Premier Foods plc.

A spokesperson for Asda told just-food today (3 December) Premier was "having problems" delivering to its supermarket format stores and the retailer therefore decided to "use two other suppliers that could".

In a statement the retailer said: "Our strategy has been to move to a clear two supply bread brands in supermarkets which are Warburtons and Kingsmill. Farmer's Loaf didn't perform well with customers so it came out as part of a range change."

Premier, which last week announced that some 900 jobs are to go as part of a range of measures to reshape its bread business, said it would not comment on the de-listing.

The company plans to close two bakeries, cut over 100 distribution routes and revamp its logistics operations in a bid to cut costs from its bread arm.

Premier, operating in a UK bread sector dogged by promotions and excess capacity, is trying to shake up its bread business to cut costs and improve returns.

Asda said it is "committed to working with [Hovis] as one of our key bakery suppliers".

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